Industry Updates

Pacific Investments sells Thames River Capital to F&C but retains its holding in Nevsky Capital

Wednesday, April 28, 2010

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Opalesque Industry Update - Pacific Investments PLC (Pacific) and its affiliated company Red River Capital today announce the conditional sale of Thames River Capital (TRC) to F&C Asset Management for a cash consideration of up to £53.6 million (US$81.5m).

Pacific founded TRC with its management team in 1998 and the company has since grown to become one of Europe’s leading multi-strategy asset management businesses.

Excluded from the sale is Nevsky Capital, which is currently an affiliate of TRC. Prior to completion of the sale, TRC’s interest in Nevsky Capital LLP will be demerged and will, thereafter, be directly held by Pacific and the other current TRC shareholders. Nevsky has approximately US$6 billion in assets under management in both long only and long-short strategies. The support services currently provided by TRC to Nevsky will continue unchanged and be unaffected by this transaction.

Sir John Beckwith, Chairman of Pacific Investments, said: "This has been a rewarding investment with the development of two highly regarded asset management businesses, Thames River Capital and Nevsky Capital. F&C will be a good partner for Thames River."

The income generated by both TRC and Nevsky, together with the sale of TRC to F&C has produced a 72% IRR to Pacific over the 12 year period, excluding the remaining value of Nevsky Capital.

Pacific will continue to develop its existing portfolio of fund management businesses, including River and Mercantile Asset Management, the UK and Global equities fund manager, which has grown to manage assets in excess of £1.2 billion since inception in 2007; Pacific Real Estate Capital Partners which was launched in 2009, as a global real estate investment vehicle; and its new wealth management business.

Pacific Investments was established by Sir John Beckwith and Mark Johnson in 1993 following the sale of London & Edinburgh Trust PLC for £510 million by Sir John and his brother Peter. Pacific has founded and financed a number of highly successful fund management businesses including Thames River Capital, River and Mercantile Asset Management, Liontrust Asset Management, Europa Capital Partners, Pacific Real Estate Capital Partners, Alpha Real Capital and Portfolio Holdings which together manage over US$20 billion of assets on behalf of institutional, high net worth and retail investors.

Thames River Capital , based in London, was formed in 1998 by a group of senior investment professionals with a common goal: the creation of a performance focused, absolute return orientated, integrated fund management business. The company offers both traditional and alternative strategy investment management for sophisticated and professional investors, through a number of single and multi-manager funds. TRC and its affiliates employ 168 staff and have US$13.6 billion under management.

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